2010, barring any extra-terrestrial phenomenon depicted in Arthur C Clark’s book, global warming will be limited to the various mundane theories that abound.  One thing that is certain as we enter 2010 is April 15.  Yes, tax time.  What does global warming and tax time have to do with anything?  Luckily, it means more money in our pockets.  Inside the American Recovery and Reinvestment Act, Congress passed many tax credits that were aimed at increasing the adoption of energy efficient appliances and products.  Below is the summary of the tax credits as well as a link to the form that you will need in order to claim the tax credit:

95% AFUE Natural Gas, Propane, Oil Furnaces – 30% of installation and parts up to $1,500.

Advanced Main Air Circulating Fan – this does not apply to the Evergreen motor.  This is for new furnace installations that do not meet the 95% AFUE, but does meet the electrically efficient standard set forth by ARI.  Qualifying systems are eligible for the 30% tax credit.  There is a trick.  You will need to apply the 30% to only the portion that applies to the blower and motor.  Manufacturers will provide this percentage.  For example, a $3000 furnace may be identified by the manufacturer to have the blower and motor cost to be 40% of the system.  This will mean that the blower will essentially be $1200.  So, the tax credit will be $360 (30% x $1200).

Geothermal Systems – 30% of the installation and parts.  No maximum cap!

Central  Air Conditioners  - 30% of installation and parts up to $1500.  Qualifying systems must meet 16 SEER AND 13 EER.

Air Source Heat Pumps – 30% of installation and parts up ot $1500.  Qualifying systems must meet 15 SEER AND 12.5 EER.

IRS Form 5695

http://www.irs.gov/pub/irs-pdf/f5695.pdf

 

FAQ on the Energy Star website:
http://tinyurl.com/yj686do

Note that the tax credit is a cumulative maximum of $1500 per tax filer’s lifetime.  So, if you had spent $5,000 on a qualified furnace, then you would be maxed out.  However, if you had spent $3,000 on a furnace, then you would have $600 left to apply (hopefully to a product that contains a Genteq product).  To keep our lawyers satisfied, please make sure you check with your tax advisor or the IRS.  Note that the tax credit is currently good for 2009 and 2010 installations only.  It’s not April 14th yet, so I can’t advise how Turbo Tax may have simplified the forms.

-Paul